Agenda Item: 1
CITY OF SANTA CLARITA
AGENDA REPORT
PUBLIC HEARINGS
CITY MANAGER APPROVAL:
DATE: May 12, 2026
SUBJECT: 2026-27 ANNUAL ACTION PLAN AND SUBSTANTIAL
AMENDMENT TO THE 2024-25 AND 2025-26 ANNUAL ACTION
PLANS
DEPARTMENT: Community Development
PRESENTER: Tracy Sullivan
RECOMMENDED ACTION
City Council approve the 2026-27 Annual Action Plan and Substantial Amendment to the 2024- 25 and 2025-26 Annual Action Plans for the Community Development Block Grant and Home Investment Partnerships Act Programs.
BACKGROUND
Since 1992, the City of Santa Clarita (City) has received an annual allocation of Community Development Block Grant (CDBG) Entitlement funds from the U.S. Department of Housing and Urban Development (HUD). These funds are intended to benefit low- to moderate-income individuals and families through programs that support housing, public services, and community improvements. The City also participates in the Home Investment Partnerships Act (HOME) Program and receives an annual allocation to support affordable housing development.
Each year, the City develops an Annual Action Plan (AAP) that outlines how CDBG and HOME funds will be used. The AAP is guided by the City’s Consolidated Plan (Con Plan), which identifies local priorities and is updated every five years. The current Con Plan, approved by the City Council in May 2024, covers the period of July 2024 through June 2029 and prioritizes the following areas: affordable housing, improvements to public infrastructure in low-income areas, services addressing homelessness and prevention, supportive human services, impacts of COVID-19 on lower-income residents, and program administration.
For Fiscal Year (FY) 2026-27, the City has been allocated $1,418,917 in CDBG Entitlement funds and $472,514 in HOME Entitlement funds. Additionally, the City is requesting to amend its 2024-25 and 2025-26 Annual Action Plans to modify its intended use of $1,444,430 in CDBG Entitlement funds through a Substantial Amendment. The City’s plans for a Substantial
Amendment are detailed at the end of this report.
Community Needs and Application Process
To ensure the AAP reflects current community needs, the City conducted its annual Community Needs Assessment (CNA) from September to November 2025. Outreach included online surveys, in-person engagement at community events, and distribution of informational fliers at public facilities. A total of 314 residents participated, and the results were provided to the City Council in February 2026, as part of a public hearing.
In conjunction with the CNA, the City issued a Notice of Funding Availability (NOFA) in November 2025, inviting nonprofit organizations to apply for funding for FY 2026-27. Over 200 organizations were notified of the opportunity. A total of 20 organizations submitted applications for 25 public service programs, requesting a combined total of $1,377,986 in CDBG funding. A panel of City staff evaluated all applications based on eligibility, alignment with Con Plan priorities, and community impact.
Per HUD requirements, no more than 15 percent of the annual CDBG allocation may be used for public service programs. For FY 2026-27, this equates to $212,837 available for public services.
Additionally, in response to the COVID-19 pandemic, in FY 2020-21, the City received a one- time CDBG-CV allocation to prevent, prepare for, and respond to the pandemic. Since receiving its CDBG-CV allocation, the City has funded qualifying programs which have supported a variety of successful public service programs helping low-income residents recover from the impacts of the pandemic. To qualify for CDBG-CV, programs must directly address pandemic- related needs, such as rental assistance, learning loss, and household support. The City has $807,172 in remaining CDBG-CV funds which are set to expire in September 2027.
X
Recommended Programs and Use of Funds
Based on the evaluation of applications and estimated funding levels, staff is recommending 19 programs for funding. Seven programs are recommended for funding through the City’s Fiscal Year 2026-27 CDBG allocation, while the remaining twelve are recommended to be funded using CDBG-CV funds.
The recommended programs support a range of services, including mental health support for single-parent households, employment training for youth with disabilities, services for individuals experiencing homelessness, and senior outreach. These services are expected to benefit primarily low-income individuals throughout the City.
In accordance with HUD requirements, a minimum of 65 percent of the City’s CDBG funds must be allocated to capital improvement activities. Staff recommends using this allocation in addition to the total funds available through the Substantial Amendment to fund Creekview Park Improvements, which serves low-and moderate-income residents in the surrounding area. Staff also recommends continued support for the Handyworker Program administered by the Santa Clarita Valley Senior Center, which provides minor home repairs and accessibility improvements for low-income residents.
The City’s HOME allocation of $472,514 will be committed to a future affordable housing development, consistent with the priorities identified in the Con Plan and HUD requirements.
Substantial Amendment to the 2024-25 and 2025-26 Annual Action Plans
Through the City’s 2024-25 and 2025-26 CDBG Annual Action Plans, a total of $1,448,452 has been allocated toward Playground and Facility Improvements at the Newhall Community Center.
However, the project was deemed ineligible in 2025 after initiating an Environmental Review and consultation with HUD.
After necessary costs to perform a professional Environmental Review, the City has a total of $1,444,430 in funds applicable for use of funding toward an eligible capital project. In order to allocate the available funds toward another project, a Substantial Amendment is needed. A Substantial Amendment modifies the previously approved Annual Action Plans for the program year in which the project was originally approved to include any additional funding. Effectively, the 2024-25 and 2025-26 Annual Action Plans are being amended as part of the City Council action to include additional funding for the Creekview Park Improvement project.
Annual Action Plan and Public Comment
All proposed funding allocations are detailed in the attached 2026-27 Funding Recommendations document. As required by HUD, information regarding the proposed funding was available for public review and comment for a 30-day period ending May 8, 2026. All proposed activities will be subject to a National Environmental Policy Act (NEPA) environmental review prior to funding approval. The 2026-27 AAP can be found in the City Clerk’s Reading File.
ALTERNATIVE ACTION
Other action as determined by the City Council.
FISCAL IMPACT
The funding to support the recommended action is provided by the Department of Housing and Urban Develoment (HUD), has no impact on the General Fund, and will be appropriated as part of the Fiscal Year 2026-27 Annual Budget.
ATTACHMENTS
2026-27 City of Santa Clarita Community Block Grant Public Hearing Notice 2026-2027 Funding Recommendations
2026-27 Not Recommended for CDBG Funding
2026-2027 Annual Action Plan (available in City Clerk's Reading File)